I believe she was talking from a post time war perspective, as in they are only the stuff of legends because they were all wiped out. She expresses her disbelief in the doctors existence because according to records, all the time lords died.

DOCTOR WHO ONE

September 24th, 2015 - 5:28pm

Boom Yeah !! 😀

DOCTOR WHO ONE

September 24th, 2015 - 5:29pm

James – To me, her comment to the Doctor suggests she has never encountered a Time Lord before.

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